Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy.com
Equities
Asian markets rallied, encouraged by a strong rally in Western shares on Monday. The Nikkei soared 2.3% to 8488, the Kospi advanced 2.3%, and the ASX gained 1.1%. Both the Hang Seg and the Shanghai Composite rose 1.2%.
In Europe, markets rose moderately, lifted by a jump in consumer confidence in the US. The DAX gained 1% to 5800, while the CAC40 and FTSE closed up .5%. Policymakers approved a $10.7 billion bailout payment to Greece in an effort to slow the spiraling debt crisis.
Back in the US, the major indexes closed mixed, as the Nasdaq skidded .5%, while the Dow gained 33 points to 11556 and the S&P 500 rose .2%.
Nasdaq Closes Down .5% Continuing the Recent Slide
American Airlines parent, AMR, filed for bankruptcy, sending shares plunging 84% to .26. The company cited high labor costs and rising fuel prices as causes for the company’s cash shortage.
Tiffany shares slumped 8.7% after issuing a weaker outlook than hoped.
Treasuries and Commodities
An auction of Italian bonds had record high yields, with 10-year notes yielding 7.56%, with a bid-to-cover ratio of 1.34. The high yields highlight the mounting debt concerns facing the region, but the ability to cover the auction indicates investors have not reached a state of panic.
US bonds slipped, with 10-year notes down 7/32 to yield 2.00%, and 30-year notes dropped 25/32 to yield 2.97%.
Energy gained, with crude oil up 1.6% to 99.80, and natural gas up 2.9% to 3.626.
Metals traded mixed as gold rose .4% to 1717.30, and copper rallied 1% to 3.394, while silver dropped 1% to 31.853.
Wheat jumped 3.9%, and corn gained 1.2% as agricultural futures traded mostly higher.
Currencies
The Australian Dollar soared for a second day, jumping 1.2% to 1.0026 as investors slowly recovered their risk appetite. The Pound gained .7% to 1.5609, and the Euro inched up .1% to 1.3328. The Canadian Dollar rose .4% to 1.0302, and the Swiss Franc settled up .3% at 1.0872.
Economic Outlook
Tuesday’s economic data was a mixed bag. Consumer confidence soared to 56 from 40.9, blowing past analyst forecasts. The Case-Shiller home price index dropped 3.6%, more than expected, but the FHFA house price index rose .9%, painting a mixed picture of the housing market.
Wednesday’s busy economic calendar will include the ADP employment report, the Challenger job-cut report, Chicago PMI, pending home sales, Beige Book, and weekly oil inventories.
Earnings are due from Aeropostale, American Eagle Outfitters, Guess and Krispy Kreme Donuts.
Equities
Asian markets rallied, encouraged by a strong rally in Western shares on Monday. The Nikkei soared 2.3% to 8488, the Kospi advanced 2.3%, and the ASX gained 1.1%. Both the Hang Seg and the Shanghai Composite rose 1.2%.
In Europe, markets rose moderately, lifted by a jump in consumer confidence in the US. The DAX gained 1% to 5800, while the CAC40 and FTSE closed up .5%. Policymakers approved a $10.7 billion bailout payment to Greece in an effort to slow the spiraling debt crisis.
Back in the US, the major indexes closed mixed, as the Nasdaq skidded .5%, while the Dow gained 33 points to 11556 and the S&P 500 rose .2%.
Nasdaq Closes Down .5% Continuing the Recent Slide
American Airlines parent, AMR, filed for bankruptcy, sending shares plunging 84% to .26. The company cited high labor costs and rising fuel prices as causes for the company’s cash shortage.
Tiffany shares slumped 8.7% after issuing a weaker outlook than hoped.
Treasuries and Commodities
An auction of Italian bonds had record high yields, with 10-year notes yielding 7.56%, with a bid-to-cover ratio of 1.34. The high yields highlight the mounting debt concerns facing the region, but the ability to cover the auction indicates investors have not reached a state of panic.
US bonds slipped, with 10-year notes down 7/32 to yield 2.00%, and 30-year notes dropped 25/32 to yield 2.97%.
Energy gained, with crude oil up 1.6% to 99.80, and natural gas up 2.9% to 3.626.
Metals traded mixed as gold rose .4% to 1717.30, and copper rallied 1% to 3.394, while silver dropped 1% to 31.853.
Wheat jumped 3.9%, and corn gained 1.2% as agricultural futures traded mostly higher.
Currencies
The Australian Dollar soared for a second day, jumping 1.2% to 1.0026 as investors slowly recovered their risk appetite. The Pound gained .7% to 1.5609, and the Euro inched up .1% to 1.3328. The Canadian Dollar rose .4% to 1.0302, and the Swiss Franc settled up .3% at 1.0872.
Economic Outlook
Tuesday’s economic data was a mixed bag. Consumer confidence soared to 56 from 40.9, blowing past analyst forecasts. The Case-Shiller home price index dropped 3.6%, more than expected, but the FHFA house price index rose .9%, painting a mixed picture of the housing market.
Wednesday’s busy economic calendar will include the ADP employment report, the Challenger job-cut report, Chicago PMI, pending home sales, Beige Book, and weekly oil inventories.
Earnings are due from Aeropostale, American Eagle Outfitters, Guess and Krispy Kreme Donuts.